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Infosys (INFY) Recently Broke Out Above the 20-Day Moving Average
Infosys (INFY - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, INFY broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
INFY has rallied 9.6% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests INFY could be on the verge of another move higher.
Once investors consider INFY's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.
Investors should think about putting INFY on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.